Soon after the OPEC meeting, various theories were put forward about OPEC's and Saudi Arabia's intentions. The conspiracy theory shifted completely. From being against Russia and/or Iran, to being all about hurting US shale oil production. And others said OPEC was dead! It was like staring into a mirage. It was all nonsense, but it does have an impact on the direction of the oil price, at least for a couple of weeks.

Instead, he said, the decision not to cut production was taken because non-OPEC producers (specifically, Russia and Mexico) would not agree to cut in a meeting the day before the official OPEC meeting.

"Neither non-OPEC producer was prepared to cut. They have their own reasons. So OPEC took a bold decision. In the current circumstances, it could not act alone. It agreed to keep the same production level and to let the market balance itself," he said.

Further, Al-Muhanna said that he did not think the fundamentals in the market warranted the price going as low as it did and that prices are likely to stabilize where they have been in recent weeks, at about $60 a barrel.

"It's my view that optimistic and positive people are more right than wrong," he said. "I'm confident that demand is, and will be, stronger. I'm also confident that supplies will be just sufficient to meet demand and that prices will firm up."

However, while the price of brent crude was back above $60 a barrel, it has been falling since the beginning of March. On Monday morning it was trading below $53 a barrel.